M/s. Krishna Ispat, Sihor V. The ITO, Ward-2(4), Bhavnagar

ITA 2361/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9352 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 30-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTOSH KARNANI
• Keywords: Depreciation; Set aside

Judgement Text

ITA 2361/AHD/2017 AY: 2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH AHMEDABAD BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO. 2361/AHD/2017 AY : 2014-15 M/S KRISHNA ISPAT, SURVEY NO. 43, PLOT NO. 1 & 2, SIHOR GHANGHALI ROAD, SIHOR 364240 (PAN: AAKFK1535E) VS INCOME TAX OFFICER, WARD 2(4), BHAVNAGAR (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI SUDHIR MEHTA, MS POOJA GODAA, ARS RESPONDENT BY: SHRI SANTOSH KARNANI, SR. DR DATE OF HEARING : 2 8.06.2019 DATE OF PRONOUNCEMENT: 01.10.2 019 ORDER PER SUDHANSHU SRIVASTAVA, J.M.: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AG AINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (AP PEALS) 6 , AHMEDABAD {CIT (APPEALS)} FOR ASSESSMENT YEAR 2014 15 WHEREIN, VIDE THE IMPUGNED ORDER DATED 31 ST OF AUGUST 2017, THE LD. FIRST APPELLATE AUTHORITY HAS UPHELD THE DISALL OWANCE OF DEPRECIATION ON MOULDS. ITA 2361/AHD/2017 AY: 2014-15 2 2.0 THE BRIEF FACTS OF THE CASE ARE THAT THE ASSE SSEE HAD CLAIMED DEPRECIATION ON IRON MOULDS AT THE RATE OF 80%. IT WAS THE OPINION OF THE ASSESSING OFFICER THAT THE A LLOWABLE RATE OF DEPRECIATION WAS 15%. THE ASSESSING OFFICER PROCEED ED TO MAKE A DISALLOWANCE OF THE EXCESS DEPRECIATION TO THE TUNE OF RS. 81,153/-. THE ASSESSEES APPEAL BEFORE THE LD. FIRS T APPELLATE AUTHORITY WAS ALSO DISMISSED INASMUCH AS THE LD. CI T (APPEALS) FOLLOWED THE ORDER OF HIS PREDECESSOR IN ASSESSMENT YEAR 2012 13 WHEREIN THE EXCESS DEPRECIATION ON MOULDS ON IDE NTICAL GROUNDS HAD BEEN UPHELD. 2.1 NOW, THE ASSESSEE IS BEFORE THIS TRIBUNAL AND HAS CHALLENGED THE CONFIRMATION OF DISALLOWANCE OF DEPR ECIATION BY THE LD. FIRST APPELLATE AUTHORITY. 3.0 AT THE OUTSET, THE LD. AUTHORISED REPRESENTATI VE SUBMITTED THAT NOW THE ISSUE STOOD COVERED IN FAVOU R OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR I.E. 2012 13. THE LD. AUTHORISED REPRESENTATIVE PLACED COPY OF ORDER DATED 20/02/2019 IN ITA NO. 2200/AHD/2016 BEFORE THE BENC H AND SUBMITTED THAT THE CO-ORDINATE BENCH OF THE TRIBUNA L HAD NOTED ITA 2361/AHD/2017 AY: 2014-15 3 THAT SINCE IRON MOULDS HAVE SHORTER SPAN OF LIFE, D EPRECIATION AT THE RATE OF 80% WAS ALLOWABLE. 4.0 IN RESPONSE, THE LD. SENIOR DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AU THORITIES. THE LD. SENIOR DEPARTMENTAL REPRESENTATIVE, HOWEVER, FA IRLY ACCEPTED THAT THE TRIBUNAL, IN THE IMMEDIATELY PRECEDING YEA R, IN ASSESSEES OWN CASE, HAD ALLOWED AN IDENTICAL ISSUE IN ASSESSEES FAVOUR. 5.0 WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE A LSO PERUSED THE MATERIAL ON RECORD. WE HAVE ALSO PERUSE D THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 2012 13 IN ITA NO. 2200/AHD/2016 WHEREIN, VIDE ORDER DATED 20/02/2019, THE TRIBUNAL HAS ACCEP TED THE ASSESSEES CLAIM FOR DEPRECIATION ON IRON MOULDS AT THE RATE OF 80%. IN THE ABOVE SAID ORDER, THE COORDINATE BENCH OF THE TRIBUNAL HAS DULY TAKEN NOTE OF THE JUDGEMENT OF TH E HONBLE PUNJAB AND HARYANA HIGH COURT IN CIT VERSUS MALERKO TLA STEELS AND ALLOYS (PRIVATE) LIMITED REPORTED IN 10 TAXMANN .COM 278 AND ALSO OF THE JUDGMENT OF THE HONBLE MADRAS HIGH COU RT IN THE CASE OF CIT VERSUS ADITYA FERRO ALLOYS (PRIVATE) LI MITED AND HAS THEREAFTER ALLOWED THE ASSESSEES CLAIM OF DEPRECIA TION AT THE RATE ITA 2361/AHD/2017 AY: 2014-15 4 OF 80% IN THE CASE OF CAST IRON MOULDS. THE DEPARTM ENT COULD NOT BRING TO OUR NOTICE ANY JUDGEMENT TO THE CONTRARY I N THIS REGARD. THEREFORE, RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINATE BENCH IN ASSESSEES OWN CASE FOR IMMEDIATELY PRECEDING AS SESSMENT YEAR AS AFORESAID WE SET ASIDE THE ORDER OF THE LD. CIT (APPEALS) AND DIRECT THE ASSESSING OFFICER TO ALLOW DEPRECIAT ION ON IRON MOULDS AT THE RATE OF 80%. 6.0 IN THE FINAL RESULT APPEAL OF THE ASSESSEE STA NDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.10.2019 SD/- SD/- (AMARJIT SINGH) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY DATED: 01 ST OCTOBER, 2019 *DRAGON* *DRAGON* *DRAGON* *DRAGON* COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER ASSTT. REGISTRAR ITAT, NEW DELHI